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28 Mar 2019, 05:11
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D
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Difficulty:
45%
(medium)
Question Stats:
68% (02:16) correct
32%
(02:25)
wrong
based on 747
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Not Attempted Yet
Fuzzy Friends is a nationwide pet store chain. Its stores vary in size and store space has custom-designed wall-to-wall carpeting. The carpet in several Fuzzy Friends stores needed replacing. The winning bid for the nationwide carpet replacement was submitted by Bathyderm Carpet Company (BCC). The bid contract involves all delivery costs, all installation, and any ongoing maintenance and upkeep while the carpet is under the seven-year warranty. Under the terms, Fuzzy Friends is responsible for all cleaning costs. Because BCC had installed carpets in a number of other office spaces and stores, its officials felt that they could reap a substantial profit from this contract with Fuzzy Friends.
Which of the following, if true, most calls in question the argument that BCC will make a large profit from this contract with Fuzzy Friends?
a. All the carpets will have to be transported by train from the BCC factory in Louisville, KY, to Fuzzy Friends’ locations from coast to coast.
b. Pet odors require frequent carpet shampoos, which are more expensive and time-consuming than more conventional forms of carpet care, such as vacuuming.
c. Pet stores attract many customers, including children, who want to sit on the floor and pet the animals.
d. A common flea medicine, designed to coat the bodies of dogs and cats, weakens the integrity of the principal fibers used in BBC carpets.
e. The next competing bid received by Fuzzy Friends after BCC's was 50% higher than BCC's bid and provided only a four-year warranty.
Which of the following, if true, most calls in question the argument that BCC will make a large profit from this contract with Fuzzy Friends?
a. All the carpets will have to be transported by train from the BCC factory in Louisville, KY, to Fuzzy Friends’ locations from coast to coast.
b. Pet odors require frequent carpet shampoos, which are more expensive and time-consuming than more conventional forms of carpet care, such as vacuuming.
c. Pet stores attract many customers, including children, who want to sit on the floor and pet the animals.
d. A common flea medicine, designed to coat the bodies of dogs and cats, weakens the integrity of the principal fibers used in BBC carpets.
e. The next competing bid received by Fuzzy Friends after BCC's was 50% higher than BCC's bid and provided only a four-year warranty.
01 Apr 2019, 23:19
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AkshdeepS
Fuzzy friends is a pet store chain with wall-to-wall carpets.
BCC won the bid which included all delivery costs, all installation, and any ongoing maintenance and upkeep for 7 yrs
Cleaning costs belong to FF
BCC had installed carpets in a number of other office spaces and stores
BCC expects a big profit.
What calls into question that BCC will make a large profit?
Just think about it - what can you expect the answer would be? BCC has given the quote as per their substantial experience of installing carpets. They are expecting a big profit. If they do not get it, it would be because of something unexpected. Something specific about pet store usage that would lead to extra costs. Delivery and installation for any store wouldn't be different. It could be that maintenance of the carpet could lead to substantial expenses and reduce their profit. Rest, the options can guide us.
a. All the carpets will have to be transported by train from the BCC factory in Louisville, KY, to Fuzzy Friends’ locations from coast to coast.
This would be expected cost of delivery which BCC management would have already accounted for. They still expect a big profit.
b. Pet odors require frequent carpet shampoos, which are more expensive and time-consuming than more conventional forms of carpet care, such as vacuuming.
Carpet cleaning expense belongs to FF, not BCC. So BCC wouldn't see extra expense here.
c. Pet stores attract many customers, including children, who want to sit on the floor and pet the animals.
We don't know whether sitting on the floor would lead to more frequent maintenance.
d. A common flea medicine, designed to coat the bodies of dogs and cats, weakens the integrity of the principal fibers used in BBC carpets.
Yes, this could be the unexpected expense. It is specific to a pet store. The medicine could lead to early deterioration of the carpet and hence more regular maintenance. Even if replacement is not needed, some kind of mending might be if the integrity of the principal fibres will be weakened.
e. The next competing bid received by Fuzzy Friends after BCC's was 50% higher than BCC's bid and provided only a four-year warranty.
Irrelevant.
Answer (D)
General Discussion
28 Mar 2019, 06:36
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AkshdeepS
option B also seems to do the same. how to f[differentiate??
